In a speech which won a standing ovation from Tory activists, he told malcontents: "You either want my mission or you want Tony Blair. There is no third way."

The message to his internal critics from his one hour, two minute speech was that the only alternative to his leadership was electoral suicide.

It later emerged that former Treasury minister John Maples - who was accused of canvassing support for a leadership challenge - will be called in by the party's chief whip for a "career development interview".

In his speech Mr Duncan Smith said it was the prime minister who should go, and he accused Mr Blair of leading a "deceitful, incompetent, shameful and lying government".

"Today I have delivered. I stand before you with the most radical policy agenda of any party aspiring to government since 1979," he said.

"They said we couldn't win the May elections and we did. We are the largest and fastest growing party of local government.

"My mission is to take the Conservative Party back to government."

No alternative

Turning to Labour, he delivered a highly personal attack on the prime minister, saying he sees himself as "god in 'Blairworld'".

Labour scandals since 1997 had shown the government's "dark side" but the treatment of government weapons expert Dr David Kelly was Mr Blair's "blackest act", he said.

"This government used Dr David Kelly as a pawn in its battle with the BBC - his death was first and foremost a tragedy for those who loved him. But it shamed our country."

"Plenty of pointing, outstretched arms and even the occasional come-and-have-a-go-if-you-think-you're-hard-enough glare."